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Sasko Lazarov/Photocall Ireland

Property developer Michael O'Flynn: I can repay €24.9m loans "immediately"

A US investment fund had demanded that that he repay the loans but O’Flynn says they wanted him to default.

PROPERTY DEVELOPER MICHAEL O’Flynn has written to a US investment fund informing them that he has the funds to “immediately repay” the €16.7 million of loans that have been demanded of him.

Flynn also told the fund that he can in fact pay back all of the €24.9 million in debts he owes to Carbon Finance Limited, a subsidiary of Blackstone.

A statement released by O’Flynn this evening made no mention of the source of the funds available to repay the loans

On 29 July, Carbon had issued a demand for the repayment of the loans and “within hours” had also appointed a receiver on a number of assets of the O’Flynn Group.

Carbon also petitioned the High Court to appoint an interim examiner on four of the O’Flynn Group’s companies.

O’Flynn’s statement this evening says that their actions in demanding repayment were intended to bring about a default:

Carbon openly admitted in the court proceedings that service of the personal demands was undoubtedly designed to bring about an event of default on the corporate facilities.

O’Flynn is also seeking to have the granting of the interim examiner removed. This is he says; “on the basis that Carbon Finance Limited failed to disclose all material matters to the court in its application”.

These included, for example, the fact that the companies were up to date in all their payment obligations, had significant cash on hand, had been cooperating with Carbon and supplying it with financial information and that there existed a number of disputes about how the loan facilities were now being operated by Carbon as compared to NAMA.

O’Flynn is also to apply for an order that rules that the demands made by Carbon were unlawful because the loans were being “fully serviced”.

The two parties are due in court tomorrow.

Read: Google and Blackstone to buy four buildings from NAMA’s ‘Platinum Portfolio’ >

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